The Hindu Business Line : MTNL incurs Rs 84-cr loss on rise in staff costs

New Delhi, April 29 Mahanagar Telephone Nigam Ltd (MTNL) reported a net loss of Rs 83.8 crore for the fourth-quarter ended March 31, primarily due to increased staff costs. The company had reported a net profit of Rs 173.73 crore in the January-March quarter of 2007-08.

“The staff expenses during this quarter have gone up from Rs 302.38 crore to Rs 650.78 crore i.e. by Rs 348.4 crore as compared to the corresponding quarter of the previous year. During this quarter, as a result of merger of 50 per cent of DA with basic pay, there is an increase of Rs 218.72 crore in various allowances, House Rent Allowance being the major component of such increase,” the public sector firm said.

Total income during the quarter declined to Rs 1,085.1 crore from Rs 1,172.9 crore of the same quarter of FY’08.

Full-year net down 63%

For the financial year ended March 31, 2009, the telecom operator posted a net profit of Rs 214.82 crore, registering a 63.39 per cent drop compared with Rs 586.89 crore of the same quarter a year ago.

Total income during the year fell marginally to Rs 4,576 crore from Rs 4,882 crore. Shares of MTNL closed at Rs 72.05, up 0.14 per cent on the BSE.

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